Habits are powerful. They become ingrained in our way of thinking and our actions.
Some habits are good. Habitually spending time with God every morning is a habit to treasure. It is a habit worth keeping.
But some habits are destructive.
When it comes to money, bad financial habits can place a barrier between you and financial health. They can put you deep into debt and living paycheck to paycheck.
According to
Marcus Roberts, they are habits that must be broken. Here are a few that I come across regularly:
- Impulse purchasing. You see it, and you buy it. Impulse purchasing often leads to regret and debt. Instead, walk away. Give yourself some time to think about the purchase. Do you really need a fifth red shirt? Those who are slow to purchase tend to make better purchase decisions. I know of some who wait a full twenty-four hours before purchasing something they run across. This is a good habit.
- Treating credit cards like free money. You are quick to swipe (or click) and build a balance. Most who do this do not really understand the ramifications of credit card debt. They treat credit card debts as a good deal. They don’t understand the costs. And they don’t understand the stress they will feel from the mound of high interest, unsecured debt that will reveal itself on their next bill. If you use a credit card, make it a habit to only purchase what you can afford to pay off in full and get a free credit check once in a while. This is a good habit.
- Assuming that everything will be okay. You think that somehow everything will work itself out. But the reality is that bad financial habits never lead to good financial outcomes. It won’t work out. It won’t be okay. A better approach is to assume that your future financial health relies on your ability to make good financial decisions now. This is a good habit.
Financially healthy people tend to have financially healthy habits. They were consistently sound stewards with what God gave them. They gave generously, saved wisely, and lived appropriately.
Rid yourself of impulse purchasing, credit card abuse, and faulty thinking. Breaking these bad financial habits can help put you on the path to financial health.
Written by Art Rainer, member of the Summit Stewardship and Generosity Ministry Leadership Team.Get resources like this one directly into your inbox by signing up for the Stewardship Ministry Digest.The Summit provides free financial coaching to help you gain control of your personal finances according to God’s plan.Sign up here.